Prequalification for Househacking When Unemployed?

[Snehann Kapnadak]

Hi All,

Hope you're staying safe! Hoping someone could impart some advice for my situation:

I was recently laid off from my real estate tech job due to the pandemic. I'll be starting a full-time MBA program in Washington DC for the next two years and will be moving down from the NY/NJ area over the summer (~August, but TBD). I'd love to househack in the market, but I know it's super expensive (unless I want to live on the east side of DC, which is not feasible unfortunately because of the logistics of going to and from school). If it helps, I have excellent credit, had W2 jobs for the past 2 years, and I also have 1 out of state SFH with about 10K equity.

My question is: How can I qualify for an owner-occupant home (either FHA or 1st Time Homebuyer program through Fannie/Freddie) when I'm unemployed and will be a student? Would I be able to leverage my rental for the loan?

I'm speaking to a few local lenders this week but also wanted to see what the BP community thought. Thank you in advance for your advice/recommendations.

[Derrick Dill]

Problem is lenders are calculating based on your debt to income ratio. If you have no income, you're home-buying power will be very poor. An option I can think of is getting a co-borrower to sign on the mortgage with you. Good luck